Modern World HistoryChapter 9, Section 4

Reforming the Industrialized World

Laissez faire

• As industrialization created a wide gap between the rich and the poor, some defended it and others demanded reforms

• Laissez faire – economic policy of letting owners of industry and business set working conditions without regulations from govt. to create a free market

Capitalism • Adam Smith – Scottish professor who wrote “The Wealth of Nations” that defended laissez faire, saying that it guaranteed economic progress– Laws of self interest,

competition , and supply and demand lead to economic growth

• Capitalism – economic system in which factors of production are privately owned and money is invested in business ventures to make a profit

Increasing Populations

• Thomas Malthus – argued that population tends to increase more rapidly than the food supply, and without wars and disease most are destined to be poor and miserable

• David Ricardo – believed a permanent underclass will always be poor, and that population growth leads to an abundance of low paid workers

Criticisms of Industrialization• Utilitarianism – philosophy that

states that people should judge ideas, actions, institutions on the basis of their usefulness– Questioned unregulated

capitalism because if was wrong that workers received starvation wages while others profited greatly

• Utopian communities – attempts to create perfect societies where the needs of everyone are considered

Socialism• Socialism – a new

economic system that sought to offset the ill effects of industrialization by having the factors of production owned by the public and operated for the welfare of all

• Supporters believed it would end poverty and promote equality

Communism• Marx and Engels, two German

philosophers, wrote the Communist Manifesto outlining their ideas about how economic forces dominate society

• They described two warring classes that emerge throughout history:– Haves (Bourgeoisie) – the

employers who control the means for producing goods

– Have-Nots (Proletariet) – the workers who perform back-breaking labor under terrible conditions

• Marx believed that the capitalist society formed during the Industrial Revolution would collapse– Small producers would be

driven out– Small number of manufacturers

would control all of the wealth– Proletariat would rebel , seize

the factories and mills and take control of government, and share future profits

• Communism – form of complete socialism in which the means of production (all land, factories, mines, railroads, and businesses) would be owned by the people

Workers Fight for Improved Conditions• Factory workers faced long

hours, dangerous working conditions, and threat of being laid off

• Workers joined voluntary labor associations called unions that tried to address these problems

• They attempted collective bargaining negotiations with employers, but often resorted to strikes to try to make gains

British Reform Laws

• Factory Act of 1833– Restricted child labor

• Mines Act of 1842– Women and children

couldn’t work underground in mines

• Ten Hours Act of 1847– Limited work day for

women and children to 10 hours a day

Reform Movements

• Women’s rights – Women could earn more

in factories than at home, but were paid far less than men

– Women’s right groups began to form

• Abolition of slavery– Ended in British Empire in

1833, and in US in 1863• Public education– To train a well-educated

work force for factories• Prison reform